While surfing the internet, you may come across plenty of sites offering information on the benefits of using a payment gateway on your e-commerce site. However, there is very little info available on the benefits of using more than one. Though most of the digital gurus will agree that having one gateway is enough, the stats show otherwise. According to Statista, the e-commerce industry which even last year amounted to 2.3 trillion US dollars, is expected to grow up to 4.48 trillion US dollars by 2021.
Such a massive growth will accompany certain new and innovative ways to make money online, and most of these models won’t work effectively unless you use multiple gateways (such as PayPal or paytm payment gateway). We understand if you are still sceptical about using more than one payment gateway for your online store, who isn’t while trying out something new for the first time.
So, in order to help you make up your mind, we have provided below top seven compelling reasons why you should be using multiple gateways instead of just one for your e-commerce site, reasons that won’t just boost your bottom line but also improve your business as a whole.
The first and the foremost reason for using more than one payment gateway is the customer convenience which, we believe, is every retailer’s top priority. Today, many users like the idea of having multiple modes of payment, not because of the availability of more and more payment alternatives, but simply because many of these people have biases towards one or another.
As an online retailer, the responsibility falls on your shoulders to provide multiple gateways to cater to their needs. Providing these will greatly prevent shopping cart abandonment and in due time, will become the primary reason behind higher sales and conversions.
2. Good Economics
Using multiple gateways and that too the popular ones (such as PayPal payment gateway etc.) makes good business sense even if you aren’t currently or in future, planning to expand on an international scale. This is because of the contract requirements and the related fees and how collaboratively they affect your bottom line. Another one of the primary factors that help improve your conversion rates in general.
Another benefit of adding several payment gateways is how they make your e-commerce site appear more professional and reliable. And these two, we believe, are something any online store could use. Appearing professional further lends an air of safety and security to the store. There’s a reason you don’t see notable organizations with just one payment gateway.
4. Providing back up
This is probably the most obvious one of the benefits of working with more than one gateway for your e-commerce store. We all know the importance of backing up our business data on a regular basis. More so for online retailers, who we believe should make it their top priority to backup all their e-commerce related transactions.
Paytm understands this well enough that’s why it provides us similar backups for our customers’ payment information as a second backup option in case primary ones are not functioning. Paytm payment gateway is PCI DSS 2.0 certified platform which means it does not store credit card data in unencrypted form. Moreover, it provides alternative options in case your primary gateway is underperforming or under duress for any reason.
5. Helps you connect internationally
While speaking globally, there are many countries and currencies which only accept certain payment gateways. With multiple options, you not only have the freedom to appeal to the audience on a global scale but also to deal with multiple currencies. This is primarily beneficial to online retailers who are looking forward to increasing their audience reach by expanding their business across horizons.
Many countries prefer payment gateways based on their region, it only seems reasonable to integrate gateways based on your audience’ location.
Honestly, do you believe your single gateway is capable of handling different payment methods and complex use cases single-handedly? You don’t have to answer that because we know how most gateways are limited in their ability to address multiple payment scenarios. However, that doesn’t mean you have to work with separate gateways just because each one specializes in one or two features that you need.
You use paytm payment gateway and other popular ones simply because they offer your customers the independence to move freely from shopping in-store to online on their smartphones.
7. Customer retention
Last but probably the most important reason to use multiple options is customer retention. Merchants dealing with frustration while accepting online payments is nothing new. The frustration that stems from failed transactions which further lead to loss of sales besides wasted time on customer support. Not to mention the lack of comfort that prompts the customer to look for alternatives, in this case, your competitors.
Exposing your customers to more than one payment gateway allows them to complete their purchase without any hassles and make them come back in the future. Catering to your customers’ wants is a sure shot way of maximising your success along with increasing your company’s conversion rate.
People like options and control in any situation and the majority of them will cancel their purchases without a second thought if they do not find the payment gateway they fancy. They generally feel comfortable purchasing from an e-commerce site that offers multiple payment solutions. And if you only had one mode of payment to offer, then your chances of maximising your sales and revenue are going to be affected.
I believe by now, you must be fairly certain why you need more than one payment gateway on your e-store. And if you are looking for a reliable e-commerce platform with an equally trustworthy payment processing partner, feel free to contact us at StoreHippo.